Iranian Banks on Recovery
– Following the Central Bank of Iran’s requirement on banks’ financial statements compliance with the International Financial Reporting Standards, banks have managed to make a 20-30% progress in adapting with such standards based on the model defined by this regulatory body. Although there are concerns over the probable shocks such changes might create in the banking system in the short run in case of any rush in implementing this scheme, the CBI has seriously followed this issue, aimed at paving the way for the return of Iranian banks to the international arena.
– On the sidelines of the World Summit on the Information Society Forum in Geneva with African officials present, the Minister of Communication announced Iran’s readiness to export engineering and technical services to African countries in order to help creating jobs and enhance economic growth.
– In a meeting with his Korean counterpart, the Minister of Economy and Financial Affair announced the opening of Iranian banks branches in South Korea and discussed ways to facilitate the exchange and transfer of foreign currency made from selling oil.
In the Market
On Thursday, the US Senate approved a new legislation to intensify sanctions on Iran. Although required to be ratified in the parliament as well, it exerted a negative effect on the market, adding fuel to the fire and leading to more sales pressure such that many tickers ended in the red after a rather strong start.
The Automotive industry was one of such groups, where despite the positive start mostly due to the probability of Saipa ticker being reopened today with high gains, gradually declined; in fact, except for a few names active in the spare parts mfg. area like Iran Lend (4.9%), Iran Tractor Mfg. (4.14%) and Nirou Mohareke (1.98%).
Banking symbols mostly settled with modest losses with Post Bank (0.44%) and Melal Credit Institute (1.19%) finishing above their flat lines. Holding its extraordinary general meeting on Thursday, June 15th, Bank Hekmat Iranian CEO announced their 50% capital raise plan based on shareholders’ paid-in capital and claims due; in case of approval, the capital will reach from IRR 4,000 bn to IRR 6,000 bn. This is done to improve financial ratios, including the capital adequacy ratio, in order to enable the bank to absorb more capital, having gained people’s trust.
Despite the rather negative sentiment in the market, the majority of companies listed on the Sugar space went through considerable gains, including Shahd (4.5%), Hegmatan Sugar (4.77%) and Shirin Khorasan Sugar (4.3). Among them, Lorestan Sugar (-3.7%) and Esfahan Sugar (-2.11%) shed the most.
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